Sharekhan has given Buy recommendation for TVS Motor Company with a target price of Rs. 803 in its research report issued on May 05, 2022

Sharekhan’s research report on TVS Motor Company

TVS Motor’s (TVSM’s) Q4FY2022 results were broadly in-line with expectations, while keeping EBITDA margin above 10%. Earnings growth is expected to witness robust 33.4% CAGR during FY2022-FY2024E, led by 15.5% revenue growth and a 100-bps expansion in EBITDA margin, with ROE to sustain over 20%. Aggressive product launches, foray into new markets, and investments in newer and cleaner technologies with profitable growth would be the company’s key growth drivers. The stock trades below its historical average at P/E multiple of 18.2x and EV/EBITDA multiple of 9.9x its FY2024E estimates.

Outlook

We maintain our Buy rating with an unchanged PT of Rs. 803.

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